Murmurs Galore For Globalstar Inc (GSAT) – A Consolidated View

13May 2017

1109

Globalstar, Inc. (NYSEMKT:GSAT) saw its shares surged almost 20% to $2.29 per share yesterday on reports it could be up for sale.

Antonio’s Perspective

Looking at GSAT stock’s daily chart, we see that last week the stock broke and closed above an important resistance line and is poised to continue higher, towards the 2.92-3 area next. The technical chart also shows the stock is on a bull market, as the stock is trading above both 50-day and 200-day exponential moving averages and the 50-day exponential moving average is on top of the 200-day exponential moving average heading upwards. Other daily technical indicators such as MACD and RSI, both are showing positive momentum while KD line is indicating upward swing. Volumes on up days continue to be higher than that on down days, suggesting accumulation. The strategy should be to “buy on dips”.

What the market seems to be saying

For the last few months, there has been a lot of activity around GSAT. Starting with an insider buy by the President and COO in May last year. Starting December though, there have been mixed signals – there have been multiple insider sales – the General Counsel and the CFO, for instance sold around the $1.42 price point in the open market; at the same time net institutional holdings have gone up with over 32 million shares bought by institutions while 8.9 million shares got sold by institutional investors.

Investing Signals & News Around Globalstar Inc

Looking at some other facts, the last earnings announcement was generally positive if not overly exciting. Losses narrowed, EPS was consistent with estimates and the company beat revenue projections. That general good performance (which did not reflect in a stock spike, by the way) and news of a potential sale coming at the time of this turn around form a potent chatter-mill combination.

With respect to the signals, Confidence Meter is around 74% so mid-to-long term analysts have been bullish for over 2 months. The consensus price target, though is $2.00 so it may not be surprising to note that with the latest rally the upside has already been achieved.

That said, if the news of a sale process gets some credible backing, it will be interesting to see how the stock behaves. A good way from here is to look at the technical analysis and observe the stock closely.

Technical Perspective in this post is by António Costa, acclaimed trader and the popular author of AC Investor Blog. All views and analysis belong to the author.

I'm a 43 year old Independent Trader using proprietary technical analysis with more than 18 years experience of investing in the US stock markets. I write guest posts for Stockal to share my thoughts about capital, risk management, and trading. My posts contains only my personal opinion and are provided for informational purposes only.

Stockal Inc is not a broker - dealer and has no affiliation with a broker - dealer.All messages are sent using Stockal's Partner TradeIt and their technology and any message sent are self-directed by the user to his or her broker-dealer with which he or she must have an account. All orders are accepted, routed and executed by the brokerage firms, and Stockal is not responsible for the order routing or execution of any transaction. Any confirmations of such transactions will be issued solely by the user’s broker-dealer. Users are solely responsible for any and all orders placed by them, and understand that all orders are unsolicited and based on their own investment decisions. Stockal and any of its employees, agents, principals, or representatives DO NOT: provide recommendations of any security, transaction, or order; provide investment advice; produce or provide research to any user regarding any security, transaction, or order; handle funds or securities related to securities orders transmitted to the user’s broker-dealer; or effect the clearance or settlement of a user’s trades.

Fundamental company data(actuals, earnings dates, guidance) provided by Benzinga, Analyst estimates provided by Estimize, ratios & indicators provided by Quandl. All information provided "as is" for informational purposes only and is not intended for trading purposes or as advice. Neither Stockal nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for actions taken in reliance on information contained herein.By accessing the Stockal site you agree not to redistribute the information found therein.